Regal Rexnord (NYSE:RRX) Share Price Crosses Below 50-Day Moving Average - Here's What Happened

Key Points

• Regal Rexnord shares fell below their 50-day moving average, trading as low as $153.31 before closing at $157.17, compared with the $157.83 average.
• Analysts remain broadly positive, with eight Buy ratings and three Holds, producing a “Moderate Buy” consensus and an average price target of $230.50.
• The company reported quarterly EPS of $2.99, beating estimates of $2.58, while revenue rose 4.2% year over year to $1.56 billion; it also declared a $0.35 quarterly dividend, yielding approximately 0.9%.

Regal Rexnord Corporation (NYSE:RRX - Get Free Report) shares passed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $157.83 and traded as low as $153.31. Regal Rexnord shares last traded at $157.17, with a volume of 1,293,514 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on RRX shares. Deutsche Bank Aktiengesellschaft began coverage on shares of Regal Rexnord in a research note on Monday, July 20th. They issued a "buy" rating and a $286.00 price target for the company. Oppenheimer lowered their price objective on shares of Regal Rexnord from $245.00 to $200.00 and set an "outperform" rating on the stock in a research report on Thursday, October 8th. The Goldman Sachs Group set a $216.00 price objective on shares of Regal Rexnord in a report on Wednesday, September 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Regal Rexnord in a research report on Thursday, October 15th. Finally, Wall Street Zen upgraded shares of Regal Rexnord from a "hold" rating to a "buy" rating in a research report on Saturday, October 24th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $230.50.

Regal Rexnord Stock Performance

The company has a market cap of $10.47 billion, a P/E ratio of 32.41, a price-to-earnings-growth ratio of 1.30 and a beta of 1.09. The business has a 50 day moving average price of $157.83 and a two-hundred day moving average price of $189.26. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.16 and a current ratio of 2.28.

Regal Rexnord (NYSE:RRX - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $2.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.58 by $0.41. The business had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.58 billion. Regal Rexnord had a return on equity of 9.93% and a net margin of 5.35%. Regal Rexnord's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period last year, the company earned $2.48 EPS. Regal Rexnord has set its FY 2026 guidance at 10.350-10.850 EPS. On average, sell-side analysts anticipate that Regal Rexnord Corporation will post 10.64 earnings per share for the current year.

Regal Rexnord Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 14th. Stockholders of record on Thursday, December 31st will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, December 31st. Regal Rexnord's dividend payout ratio is 28.87%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RRX. Westhampton Capital LLC lifted its holdings in Regal Rexnord by 3.6% in the third quarter. Westhampton Capital LLC now owns 16,730 shares of the company's stock worth $2,595,000 after buying an additional 575 shares during the period. Associated Banc Corp bought a new stake in Regal Rexnord during the 3rd quarter valued at approximately $412,000. Integrity Alliance LLC. purchased a new position in shares of Regal Rexnord during the 3rd quarter worth approximately $360,000. Greenleaf Trust grew its holdings in shares of Regal Rexnord by 1.6% during the 3rd quarter. Greenleaf Trust now owns 5,123 shares of the company's stock worth $795,000 after acquiring an additional 82 shares during the period. Finally, Vise Technologies Inc. purchased a new position in shares of Regal Rexnord during the 3rd quarter worth approximately $309,000. 99.72% of the stock is owned by hedge funds and other institutional investors.

About Regal Rexnord

Regal Rexnord Corporation is an industrial manufacturing company that develops and produces electric motors, power transmission components, motion-control systems and other equipment used in industrial and commercial applications. Its products include motors, gearboxes, bearings, couplings, belts, chains, drives, clutches, brakes and related controls, as well as air-moving and power-management solutions.

The company serves customers across industries such as automation, material handling, food and beverage, renewable energy, heating and ventilation, agriculture, and general industrial production.

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